October 28, 2021 (MLN): MCB Bank Limited (PSX: MCB) has declared its financial results for 9MCY21 ended September 30, 2021, as per which, the bank has posted its consolidated profit after tax (PAT) of Rs23 billion, translating into an EPS of Rs19.29.
The results showed a decline of 2.3% YoY when compared to the net profits of Rs23.5bn recorded in the same period of last year.
Alongside financial results, the board of directors has announced an interim cash dividend for the quarter ended September 30, 2021, at Rs4.50 per share i.e., 45%. This is in addition to the interim cash dividend already paid at Rs9.50per share i.e., 95%.
During the period under review, the bank’s interest expenses decreased by 18% YoY while, interest income came down by 15.5% YoY, thereby curtailing the growth of the bank’s net interest income (NII) to around 13.2% YoY to clock in at Rs51bn during 9MCY21 due to repricing of assets at a lower rate.
On the other hand, the NFI of the bank edged higher by 4.7% YoY to stand at Rs15.2bn due to a 14.7% increase in fee and commission income, and a 95% jump in dividend income. However, a 75% decline in capital gains has restricted NFI to grow further.
Moreover, operating expenses went up by 6.4% YoY to stand at Rs30bn in 9MCY21.
During the period, the bank witnessed provisions of nearly Rs3.5bn, compared to reversals of Rs5.2bn in 9MCY20.
|
Consolidated Profit and Loss Account for the nine months ended September 30, 2021 (Rupees '000) |
|||
|---|---|---|---|
|
Sep-21 |
Sep-20 |
% Change |
|
|
Mark-up/return/interest earned |
96,765,925 |
114,516,948 |
-15.5% |
|
Mark-up/return/interest expensed |
45,717,878 |
55,717,040 |
-17.9% |
|
Net mark-up/interest income |
51,048,047 |
58,799,908 |
-13.2% |
|
Non mark-up/interest income |
|||
|
Fee and commission income |
10,086,348 |
8,791,768 |
14.7% |
|
Dividend income |
1,228,378 |
629,210 |
95.2% |
|
Foreign exchange income |
2,378,619 |
2,100,027 |
13.3% |
|
Income/ (loss) from derivatives |
8,141 |
(3,604) |
– |
|
Gain/ (loss) on securities |
741,881 |
2,877,447 |
– |
|
Other income |
802,820 |
168,490 |
376.5% |
|
Total non mark-up /interest income |
15,246,187 |
14,563,338 |
4.7% |
|
Total income |
66,294,234 |
73,363,246 |
-9.6% |
|
Non mark-up/interest expenses |
|||
|
Operating expenses |
30,027,796 |
28,232,321 |
6.4% |
|
Workers felfare fund |
780,151 |
767,073 |
1.7% |
|
Other charges |
437,375 |
259,326 |
68.7% |
|
Total non mark-up/interest expenses |
31,245,322 |
29,258,720 |
6.8% |
|
Share of profit of associates |
690,426 |
518,852 |
33.1% |
|
Profit before provisions |
35,739,338 |
44,623,378 |
-19.9% |
|
Provisions/(reversals) and write offs-net |
(3,501,227) |
5,189,574.00 |
– |
|
Profit before taxation |
39,240,565 |
39,433,804 |
-0.5% |
|
Taxation |
16,273,635 |
15,921,924 |
2.2% |
|
Profit after taxation |
22,966,930 |
23,511,880 |
-2.3% |
|
Basic and diluted earnings per share |
19.29 |
19.75 |
-2.3% |
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